EX-99.1 2 brhc10016852_ex99-1.htm EXHIBIT 99.1
Exhibit 99.1


FOR IMMEDIATE RELEASE:

IBEX Limited Announces First Quarter Fiscal Year 2021 Financial Results
 
First Quarter Fiscal Year 2021
 

 •
Record revenue increased 14.1% year-over-year to $108.8 million

•
Net loss was $3.4 million (non-GAAP adjusted net income of $5.2 million)

•
Adjusted EBITDA increased 41.3% to $15.6 million

•
Eight new logos won and two new contact centers opened

•
Company raises guidance for fiscal year 2021

WASHINGTON, DC— (BUSINESS WIRE)—November 16, 2020—IBEX Limited (“ibex”), a leading global provider of outsourced CX solutions, today announced financial results for its fiscal quarter ended September 30, 2020.
 
“We achieved record first quarter 2021 financial results for our first quarter as a public company – driving 14.1% year-over-year revenue growth, and positioning us to raise our fiscal year 2021 guidance,” said Bob Dechant, Chief Executive Officer of ibex. “Our results are a reflection of our success with New Economy clients and large blue chip clients who are shifting their customer interactions to digital. Our broad differentiated BPO 2.0 solutions are enabling us to rapidly win strategic new logo clients across key verticals, resulting in record growth.”

Dechant continued, “Our Wave X technologies played a key role in enabling us to win new opportunities as well as had a big impact on our operational performance for our clients. The market is looking for tech-led solutions to enable digital transformation and ibex is well positioned to continue to win.”
 
First Quarter Fiscal Year 2021 Financial Highlights:

Revenue


 •
Revenue increased 14.1% to $108.8 million, compared to $95.3 million in the prior year quarter.

Net Income / (Loss)


 •
Net loss was $3.4 million, including $4.4 million of non-recurring costs, compared to net income of $2.3 million in the prior year quarter.

•
Net margin was (3.1)%, compared to 2.4% in the prior year quarter.

•
Non-GAAP adjusted net income increased to $5.2 million, compared to $3.1 million in the prior year quarter.

Adjusted EBITDA


 •
Non-GAAP adjusted EBITDA increased to $15.6 million, compared to $11.0 million in the prior year quarter.

•
Non-GAAP adjusted EBITDA margin increased to 14.3%, compared to 11.6% in the prior year quarter.

Earnings Per Share


 •
IFRS basic and fully diluted loss per share was $(0.21) in the first quarter of fiscal year 2021 compared to IFRS basic and fully diluted earnings per share of $0.00 in the prior year quarter.*

•
Non-GAAP pro forma fully diluted adjusted earnings per share increased to $0.31, compared to $0.18 in the prior year quarter.

* IFRS basic and fully diluted earnings per share for the first quarter of fiscal year 2020 does not reflect the recapitalization that occurred in connection with ibex’s initial public offering.

Balance Sheet and Cash Flow
 

 •
Net proceeds of $63.1 million received from our initial public offering, significantly strengthening our balance sheet.

•
Operating cash flow increased to $5.9 million, compared to $0.8 million in the prior year quarter.

•
Non-GAAP net debt decreased to $35.5 million, compared to $84.1 million as of June 30, 2020, primarily driven by funds received from our initial public offering.

First Quarter of Fiscal Year 2021 Business Highlights:
 

 •
Won eight new customer logos across key verticals, including fintech and logistics & delivery

•
Launched nine new clients in the quarter

•
Opened two new contact centers in Ocho Rios, Jamaica and Managua, Nicaragua, and added a total of approximately 1,000 new nearshore workstations.

•
Top three client concentration decreased to 38.1% from 46.2% in the prior year quarter

•
New Economy revenue increased by 19% compared to the prior year quarter

•
Digital business increased by 5% compared to the prior year quarter

•
Non-voice revenue increased by 9% compared to the prior year quarter

Raised Fiscal Year 2021 Business Outlook

We are raising our fiscal year 2021 guidance for revenue to between $440 million and $443 million, an increase of approximately 9% over the prior year, compared to $431 million to $435 million previously provided.

Adjusted EBITDA is now expected to be between $60.5 million and $62 million, an increase of approximately 12% to 14% over the prior year, compared to $59.5 million to $61 million previously provided.
 
Conference Call and Webcast Information

IBEX Limited will host a conference call and live webcast to discuss its first quarter of fiscal year 2021 financial results at 4:30 p.m. Eastern Time today, November 16, 2020. To access the conference call, dial (833) 614-1408 for the U.S. or Canada, or for international callers (914) 987-7129 and provide conference ID 8594841. The webcast will be available live on the Investors section of ibex’s website at: https://investors.ibex.co/.

An audio replay of the call will also be available to investors beginning at approximately 7:30 p.m. Eastern Time on November 16, 2020, until 7:30 p.m. Eastern Time on November 23, 2020, by dialing (855) 859-2056 for the U.S. or Canada, or for international callers, (404) 537-3406 and entering passcode 8594841. In addition, an archived webcast will be available on the Investors section of ibex’s website at: https://investors.ibex.co/.

Financial Information

While the financial figures included in this press release have been computed in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) applicable to interim periods, this announcement does not contain sufficient information to constitute an interim financial report as defined in International Accounting Standards 34, “Interim Financial Reporting.”  The financial information in this press release has not been audited.

Non-GAAP Financial Measures

We present non-GAAP financial measures because we believe that they and other similar measures are widely used by certain investors, securities analysts and other interested parties as supplemental measures of performance and liquidity. We also use these measures internally to establish forecasts, budgets and operational goals to manage and monitor our business, as well as evaluate our underlying historical performance, as we believe that these non-GAAP financial measures depict the true performance of the business by encompassing only relevant and controllable events, enabling us to evaluate and plan more effectively for the future. The non-GAAP financial measures may not be comparable to other similarly titled measures of other companies and have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our operating results as reported under IFRS as issued by the IASB. Non-GAAP financial measures and ratios are not measurements of our performance, financial condition or liquidity under IFRS as issued by the IASB and should not be considered as alternatives to operating profit or net income / (loss) or as alternatives to cash flow from operating, investing or financing activities for the period, or any other performance measures, derived in accordance with IFRS as issued by the IASB or any other generally accepted accounting principles.

ibex is not providing a quantitative reconciliation of forward-looking non-GAAP adjusted EBITDA to the most directly comparable IFRS measure because it is unable to predict with reasonable certainty the ultimate outcome of certain significant items without unreasonable effort. These items include, but are not limited to, non-recurring expenses, fair value adjustments, share-based compensation expense, and impairment of assets. These items are uncertain, depend on various factors, and could have a material impact on IFRS reported results for the guidance period.

About ibex

ibex helps the world’s preeminent brands more effectively engage their customers with services ranging from customer support, technical support, inbound/outbound sales, business intelligence and analytics, digital demand generation, and CX surveys and feedback analytics.

Forward Looking Statements

In addition to historical information, this release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “expect,” “predict,” “potential,” or the negative of these terms or other similar expressions.  These statements include, but are not limited to, statements regarding our future financial and operating performance, including our outlook and guidance, and our strategies, priorities and business plans. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Factors that could impact our actual results include: developments relating to COVID-19; the Frontier restructuring and its proceedings under Chapter 11 of the United States Bankruptcy Code; our ability to attract new business and retain key clients; our ability to enter into multi-year contracts with our clients at appropriate rates; the potential for our clients or potential clients to consolidate; our clients deciding to enter into or further expand their insourcing activities; our ability to operate as an integrated company under the ibex brand; our ability to manage portions of our business that have long sales cycles and long implementation cycles that require significant resources and working capital; our ability to manage our international operations, particularly in Pakistan and the Philippines and increasingly in Jamaica and Nicaragua; our ability to comply with applicable laws and regulations, including those regarding privacy, data protection and information security; our ability to manage the inelasticity of our labor costs relative to short-term movements in client demand; our ability to realize the anticipated strategic and financial benefits of our relationship with Amazon; our ability to recruit, engage, motivate, manage and retain our global workforce; our ability to anticipate, develop and implement information technology solutions that keep pace with evolving industry standards and changing client demands; our ability to maintain and enhance our reputation and brand; and other factors discussed under the heading “Risk Factors”  in our annual report on Form 20-F filed with the U.S. Securities and Exchange Commission on October 23, 2020 and any other risk factors we include in subsequent reports on Form 6-K. Because of these uncertainties, you should not make any investment decisions based on our estimates and forward-looking statements. Except as required by law, we undertake no obligation to publicly update any forward-looking statements for any reason after the date of this press release whether as a result of new information, future events or otherwise.

Media Contact: Rosemary Hanratty, Senior Director of Marketing, ibex, 412.539.7099, rosemary.hanratty@ibex.co

IR Contact: Brinlea Johnson, The Blueshirt Group, 415.269.2645, brinlea@blueshirtgroup.com

IBEX Limited
Unaudited Consolidated Statements of Financial Position

US$ in thousands
  
September 30,
2020
    
June 30,
2020
  
Assets
            
Non-current assets
            
Goodwill
  
$
11,832
    
$
11,832
  
Other intangible assets
    
2,862
      
2,781
  
Property and equipment
    
92,548
      
84,588
  
Investment in joint venture
    
338
      
331
  
Deferred tax asset
    
2,946
      
2,223
  
Warrant asset
    
2,406
      
2,611
  
Other assets
    
5,150
      
4,834
  
Total non-current assets
  
$
118,082
    
$
109,200
  
                 
Current assets
                
Trade and other receivables
    
73,840
      
62,579
  
Due from related parties
    
1,857
      
1,587
  
Cash and cash equivalents
    
79,779
      
21,870
  
Total current assets
  
$
155,476
    
$
86,036
  
Total assets
  
$
273,558
    
$
195,236
  
                 
Equity and liabilities
                
Equity attributable to owners of the parent
                
Share capital
  
$
2
    
$
12
  
Additional paid-in capital
    
158,009
      
96,207
  
Other reserves
    
31,417
      
29,456
  
Accumulated deficit
    
(116,950
)
    
(109,527
)
Total equity
  
$
72,478
    
$
16,148
  
                 
Non-current liabilities
                
Deferred revenue
  
$
1,057
    
$
434
  
Lease liabilities
    
68,029
      
62,044
  
Borrowings
    
4,535
      
3,782
  
Deferred tax liability
    
114
      
117
  
Other non-current liabilities
    
12,347
      
7,058
  
Total non-current liabilities
  
$
86,082
    
$
73,435
  
                 
Current liabilities
                
Trade and other payables
  
$
59,603
    
$
53,213
  
Income tax payables
    
2,747
      
3,087
  
Lease liabilities
    
13,460
      
12,668
  
Borrowings
    
29,302
      
27,476
  
Deferred revenue
    
4,206
      
3,470
  
Due to related parties
    
5,680
      
5,739
  
Total current liabilities
  
$
114,998
    
$
105,653
  
Total liabilities
  
$
201,080
    
$
179,088
  
Total equity and liabilities
  
$
273,558
    
$
195,236
  

IBEX Limited
Unaudited Consolidated Statements of Profit or Loss and Other Comprehensive Income (Loss)

   
Quarter ended September 30,
  
US$ in thousands, except share and per share amounts
  
2020
    
2019
  
Revenue
  
$
108,771
    
$
95,347
  
                 
Payroll and related costs
    
72,264
      
66,055
  
Share-based payments
    
2,089
      
42
  
Reseller commission and lead expenses
    
4,102
      
4,821
  
Depreciation and amortization
    
6,439
      
5,700
  
Other operating costs
    
24,790
      
14,136
  
(Loss) / income from operations
  
$
(913
)
  
$
4,593
  
                 
Finance expenses
    
(2,239
)
    
(2,307
)
(Loss) / income before taxation
  
$
(3,152
)
  
$
2,286
  
                 
Income tax (expense) / benefit
    
(271
)
    
50
  
Net (loss) / income
  
$
(3,423
)
  
$
2,336
  
                 
Other comprehensive (loss) / income
                
                 
Item that will be subsequently reclassified to profit or loss
                
Foreign currency translation adjustment
  
$
(36
)
  
$
30
  
Cash flow hedge - changes in fair value
    
33
      
-
  
   
$
(3
)
  
$
30
  
Total comprehensive (loss) / income
  
$
(3,426
)
  
$
2,366
  
                 
(Loss) / earnings per share attributable to the ordinary equity holders of the parent
                
Basic
  
$
(0.21
)
  
$
-
  
Diluted
  
$
(0.21
)
  
$
-
  
Weighted average shares outstanding
                
Basic
    
16,368,143
      
12,387,658
  
Diluted
    
16,368,143
      
12,594,993
  
IBEX Limited
Unaudited Consolidated Statements of Cash Flows

   
Quarter ended September 30,
  
US$ in thousands
  
2020
    
2019
  
CASH FLOWS FROM OPERATING ACTIVITIES
            
(Loss) / income before taxation
  
$
(3,152
)
  
$
2,286
  
Adjustments to reconcile net (loss) / income to net cash provided by operating activities:
                
Depreciation and amortization
    
6,439
      
5,700
  
Amortization of warrant asset
    
205
      
235
  
Gain on disposal of fixed assets
    
(192
)
    
-
  
Foreign currency translation loss
    
148
      
153
  
Share warrants
    
3,586
      
749
  
Phantom expense
    
125
      
13
  
Share-based payments
    
1,964
      
29
  
Provision for retirement benefit expense
    
78
      
26
  
Allowance for expected credit losses
    
243
      
(60
)
Share of profit from investment in joint venture
    
(123
)
    
(164
)
Finance expenses
    
2,239
      
2,307
  
Increase in trade and other receivables
    
(10,727
)
    
(4,663
)
Increase in prepayments and other assets
    
(316
)
    
(473
)
Increase / (decrease) in trade and other payables and other liabilities
    
9,153
      
(2,938
)
Cash generated from operations
    
9,670
      
3,200
  
Interest paid
    
(2,239
)
    
(2,307
)
Income taxes paid
    
(1,492
)
    
(106
)
Net cash provided by operating activities
  
$
5,939
    
$
787
  
                 
CASH FLOWS FROM INVESTING ACTIVITIES
                
Purchase of property and equipment
  
$
(2,901
)
  
$
(200
)
Purchase of other intangible assets
    
(310
)
    
(148
)
Capital repayment from joint venture
    
115
      
71
  
Net cash used in investing activities
  
$
(3,096
)
  
$
(277
)
                 
CASH FLOWS FROM FINANCING ACTIVITIES
                
Proceeds from line of credit
  
$
32,344
    
$
34,792
  
Repayments of line of credit
    
(31,388
)
    
(26,698
)
Proceeds from borrowings
    
1,714
      
1,000
  
Repayment of borrowings
    
(2,796
)
    
(1,699
)
Net proceeds from initial public offering
    
63,107
      
-
  
Payment of listing related expenses
     (825
 )
    -  
Principal payments on lease obligations
    
(3,055
)
    
(3,000
)
Dividends paid
    
(4,000
)
    
-
  
Net cash provided by financing activities
  
$
55,101
    
$
4,395
  
                 
Effects of exchange rate difference on cash and cash equivalents
    
(35
)
    
29
  
Net increase in cash and cash equivalents
  
$
57,909
    
$
4,934
  
Cash and cash equivalents at beginning of the period
  
$
21,870
    
$
8,873
  
Cash and cash equivalents at end of the period
  
$
79,779
    
$
13,807
  

IBEX Limited
Reconciliation of IFRS Financial Measures to Non-GAAP Financial Measures

Adjusted net income and pro forma fully diluted adjusted earnings per share:
We define “Adjusted net income” as net income / (loss) before the effect of the following items: non-recurring expenses (including litigation and settlement expenses, costs related to COVID-19, and expenses related to our initial public offering), other income, fair value adjustment related to the Amazon warrant, share-based payments, foreign exchange gains or losses, and impairment losses, as applicable, net of the tax effect of such adjustments. We define “pro forma fully diluted adjusted earnings per share” as Adjusted net income for the period divided by the weighted average fully diluted shares outstanding for the current period.

   
Quarter ended September 30,
  
US$ in thousands, except share and per share amounts
  
2020
    
2019
  
Net (loss) / income
  
$
(3,423
)
  
$
2,336
  
Non-recurring expenses
    
4,398
      
-
  
Other income
    
(151
)
    
(199
)
Fair value adjustment
    
3,586
      
749
  
Share-based payments
    
2,089
      
42
  
Foreign exchange losses
    
148
      
153
  
Total adjustments
  
$
10,070
    
$
745
  
Tax impact of adjustments
    
(1,446
)
    
63
  
Adjusted net income
  
$
5,201
    
$
3,144
  
                 
Weighted average fully diluted shares outstanding, quarter ended September 30, 2020(1)
    
17,034,939
      
17,034,939
  
Pro forma fully diluted adjusted earnings per share(2)
  
$
0.31
    
$
0.18
  

(1)
Fully diluted shares outstanding as of September 30, 2020 were 18,510,094.
(2)
We provide “pro forma fully diluted adjusted earnings per share” because the share structure for the prior year quarter does not reflect the recapitalization that occurred in connection with ibex’s initial public offering which occurred on August 7, 2020.  For purposes of this calculation, we have included 17,034,939 shares, the weighted average fully diluted shares outstanding for the quarter ended September 30, 2020, in both periods in order to enhance comparability between such periods. Beginning with the first quarter of fiscal year 2022, our share structure will be comparable year over year, and this measure will reflect the respective periods’ weighted average fully diluted shares outstanding.

EBITDA and Adjusted EBITDA:
We define “EBITDA” as net (loss) / income before the effect of the following items: finance expenses (including finance costs related to lease liabilities), income tax expense / (benefit), and depreciation and amortization (including depreciation of right-of-use assets). We define “Adjusted EBITDA” as EBITDA before the effect of the following items: non-recurring expenses (including litigation and settlement expenses, costs related to COVID-19, and expenses related to our initial public offering), other income, fair value adjustment related to the Amazon warrant, share-based payments, foreign exchange gains or losses, and impairment losses, as applicable.

   
Quarter ended September 30,
  
US$ in thousands
  
2020
    
2019
  
Net (loss) / income
  
$
(3,423
)
  
$
2,336
  
Finance expenses
    
2,239
      
2,307
  
Income tax expense / (benefit)
    
271
      
(50
)
Depreciation and amortization
    
6,439
      
5,700
  
EBITDA
  
$
5,526
    
$
10,293
  
Non-recurring expenses
    
4,398
      
-
  
Other income
    
(151
)
    
(199
)
Fair value adjustment
    
3,586
      
749
  
Share-based payments
    
2,089
      
42
  
Foreign exchange losses
    
148
      
153
  
Adjusted EBITDA
  
$
15,596
    
$
11,038
  

Free cash flow:
We define “free cash flow” as net cash provided by operating activities less capital expenditures and lease payments on right-of-use assets.


  
Quarter ended September 30,
  
US$ in thousands
  
2020
    
2019
  
             
Net cash provided by operating activities
  
$
5,939
    
$
787
  
                 
Less:
                
Capital expenditures
    
4,525
      
9,338
  
Lease payments on right-of-use assets
    
2,328
      
2,389
  
Free cash flow
  
$
(914
)
  
$
(10,940
)

Net debt:
We define “net debt” as total borrowings less cash and cash equivalents.

US$ in thousands
  
September 30,
2020
    
June 30,
2020
  
Borrowings
            
Non-current
  
$
4,535
    
$
3,782
  
Current
    
29,302
      
27,476
  
   
$
33,837
    
$
31,258
  
Leases
                
Non-current
  
$
68,029
    
$
62,044
  
Current
    
13,460
      
12,668
  
   
$
81,489
    
$
74,712
  
Total Debt
  
$
115,326
    
$
105,970
  
Cash and cash equivalents
    
79,779
      
21,870
  
Net debt
  
$
35,547
    
$
84,100